Below is information relating to M W Ltd for the year ended 31 December 2021:

Required:

(a) Prepare a reconciliation of net profit after tax to net cash provided from operating activities.

2020 Comparative Statement of Financial Position as at 31 December 2021 Assets Cash $ 44,000 Accounts receivable 26,000 Merchandise Inventory 20,000 Property, plant, and equipment 50,000 Accumulated depreciation (20,000) Total Assets $120,000 $ 23,000 34,000 15,000 78,000 (24,000) $126,000 Liabilities and Equity Accounts payable Income tax payable Debentures payable (Long-term) Share capital Retained earnings Total Liabilities and shareholders' equity $ 15,000 13,000 7,000 41,000 44,000 $120,000 $ 23,000 8,000 33,000 24,000 38,000 $126,000 Statement of Profit or Loss for the year ended 31 December 2021 $350,000 280,000 70,000 Sales Less: Cost of goods sold Gross profit Less: Selling expenses Administrative expenses Income from operations Less: Interest expense Profit before income tax Income tax expense Net profit after tax $20,000 16,000 36,000 34,000 4,000 30,000 10,000 $ 20,000 The following additional information was provided: 1. Dividends declared and paid were $14,000. 2. During the year an old machine was sold for $12,000 cash. This machine cost $28,000 originally and had a book value of $12,000 at the time of sale. 3. All depreciation expense is included in the selling expense category. 4. All sales and purchases are on account. 5. Accounts payable pertain to merchandise suppliers. 6. All operating expenses except for depreciation were paid in cash